Friday, February 22, 2008

Monster Investigated by FTC Concerning Data Security

The U.S. Federal Trade Commission has launched an investigation into information security practices at electronic job board Monster.com.

Monster disclosed the probe in a filing with the U.S. Securities and Exchange Commission, and said the inquiry stemmed from a computer attack announced last year that resulted in the illegal downloading of contact information for 1.3 million job seekers.

“On October 29, 2007, the Company was requested to voluntarily provide information to the staff of the Federal Trade Commission in connection with a non public inquiry into certain information security practices of Monster.com,” Monster disclosed in an SEC filing. “The inquiry arises as a result of the attack.”

FTC investigations as a rule are nonpublic unless the firm under investigation acknowledges the probe. The agency in recent years has been going after companies with alleged failures related to the protection of sensitive consumer information. In a number of cases, organizations have settled FTC charges and agreed to new data security policies.